SS Technologies is an agency is an youtube ads agency traditional TV audiences are declining. The month of October saw the top four broadcast networks experienced drops in their audiences between 18 to 49. Many experts believe that viewers are shifting their attention from television towards online and upload of videos.
Advertising Age, in a study of social networks and its effect on the television industry, And monetize your youtube channel found that 25 percent of people who use social networks like Facebook reported that they were spending less time watching television due to the amount of time they spent on the internet. More than a third of aged 12 to 64 who were online said they used social media sites frequently.
With the audience being drained from TV, and the use of time-shifting digital video recorders (DVR) technology such as TiVo to block ads while they watch TV, advertising dollars that can be earned through the broadcast media are declining.
Media companies must monitor their audience online or else? But the reality isn’t that simple. The current economic environment is decreasing advertising spending all over all. TechCrunch reports that in the third quarter of 2008, Google, Yahoo, Microsoft and AOL all racked up an 0.6 percent growth in the revenue generated by online advertising quarter-over-quarter.
MediaPost.com states that, even though the revenue from online ads is up 11% over the past year, compared to the growth last year at 26% the growth is largely stagnant in the year 2008. The company predicts it will be the year that marks the first year of flat year for online advertising since 2003. Others provide a more grim perspective. A survey of the attendees attending AdTech New York, private equity firm Halyard Capital found most predicted budgets for digital marketing will be cut by 10% to 20 percent in 2009.
Even more troubling for media companies is that the rates that monetize your youtube channel pay for advertising space on the internet typically measured in cost-per-thousand-impressions (CPM) are trending down. According to research conducted by Morgan Stanley, the average CPM for banner ads has decreased by $3-$1 in the last decade.
It is believed that this is due to the soaring supply of inventory (places on the internet that can show advertisements). In China advertisers pay just $.05 CPM because of the massive growth of inventory. In addition, MediaPost anticipates that the decline in the amount advertisers pay will spread to online video advertisements in 2009, an sector that has experienced an increase of two years in CPMs.
What about the social networks that television viewers are attracted to? Are they encouraging? Halyard Capital found that 68 percent of respondents believed that they are in the “strongest position to grow” in comparison to other marketing channels in the coming two years.
Advertisers see a lot of potential for social networks as a way to better tailor their advertising messages to the consumer due to the vast amount of personal data being given away. Content providers are also seeing opportunities to link traditional media with social networks. Broadcasters are beginning to integrate community features in the online players for video. Companies such as Joost are making use of social networks such as Facebook to allow social video sharing.
At first glance the social networks appear to be promising as an advertising haven during the economic downturn. Websites like Facebook, MySpace and monetize your youtube channel have a huge amount of pageviews, with a greater than average amount of pages per person and a longer average duration of time on site. In a world of CPM-driven advertising this huge amount of pageviews is a virtual treasure collection of “inventory,” because of the sheer amount of eyes.
The issue is that the effectiveness of ads on these social platforms is extremely poor. Click-through rates on these websites are anywhere from 10 to 100 times lower than average for banner ads which were already within 0.1 percentage to 1 percent.
As per the Dr. Augustine Fou, Senior Director of Digital Strategy at MRM Worldwide which is a digital marketing company The very nature of social media sites are not suitable for traditional advertising and monetize your youtube channel.
“While the biggest Web 1.0 websites (Yahoo, CNET, New York Times and so on.) were content-based sites that gathered huge audiences and facilitated massive numbers of pageviews, the most popular web 2.0 sites are social network websites. The content of both types of sites is different.
People visit Web 1.0 sites and portals to read content or send email by themselves. Users visit Web 2.0 social networks to communicate with each other and are often so absorbed in socialising that they’re less likely to notice or even act on ads despite the high number of pageviews that are generated each session. This could explain why there are significantly lower rates of clicks for ads on social media sites.
Ted McConnell, general manager-interactive marketing and innovation at Procter & Gamble Co. He believes that social networks aren’t just ineffective marketing channels, but they are completely inappropriate platforms to sell products and services, and any attempts to promote them alienate consumers. McConnell asks the advertisers to monetize your youtube channel.
What could it be that you think it would take to make money from real estate in the event that someone is breaking up with their partner?” McConnell makes the argument to the effect that “social media” isn’t really “media” in any way. Media is a communication in one direction with blank spaces which provide the inventory of advertising. Social networking is a conversation between people, and advertising can be disruptive. Consumers weren’t planning to create media, but they were looking to connect with somebody.
If the revenue from television ads is declining, and advertising on the internet generally is declining and social networks have failed to fulfil their promises to engage with consumers What can advertisers as well as media firms do in order to survive the storm? Advertisers need to make sure they’re getting the highest return on investment with their remaining advertising dollars. monetize your youtube channel Instead of spending money on the highest number of eyes the best they could, they must concentrate on advertising that is best placed to convert.
Online, this is likely to signal the need to shift away from an CPM model where marketers pay for the amount of people who view the ad, and to performance-based measures. An ad model that is based on performance will result in advertisers only paying for clicks, or other consumer actions.
McConnell believes that, as the economy gets worse the value of performance-based advertising will increase as models based on impressions fail. “‘Spray and hope’ can be more difficult when you’re under financial pressure,” he said. “So performance-based monetize your youtube channel will increase more market share than CPM.”
According the research of the research of Dr. Fou, “in the web 2.0 advertising environment, many advertisers have already shifted away from their cost-per-impression (CPM) approach to an more quantifiable as well as accountable cost per click (CPC) method (e.g., Google Adwords) where they only pay for clicks through, regardless of how many times an ad is shown. Some are even moving to the next level that is cost-per-action (CPA) which means that the advertiser doesn’t pay until the user completes what they want to action-e.g. making a purchase. “
What can media companies do to respond to the increasing demand for advertising that is based on performance? It’s not enough to just offer inventory, but now media companies have to ensure that the ads are efficient. It is more important than ever to deliver the appropriate advertising to the right audience at the right moment.
Media companies will need to collaborate directly with monetize your youtube channel companies to make sure that their advertising is integrated into content in a manner that creates the proper timing and context to convey the desired message.
One avenue that holds intriguing possibilities for targeting the content you are promoting is via mobile. 62% of the AdTech attendees who responded to the survey conducted by Halyard said mobile is the platform for advertising that is expected to increase the most over the coming two years. Mobile can be able to target consumers at exactly the right time and in the appropriate place.
Imagine walking into a pharmacy shop and being offered a discount via text message from your phone to purchase an over-the-counter pain relief. This is the power of local-based advertising, enabled through the rise in global position systems (GPS) technology in smartphones, which lets providers know precisely the location you’re in. This isn’t a science-fiction idea and companies such as Loopt as well as NAVTEQ are already beginning to show ads based on location on phones near to you.
While social media may not be the perfect solution for creating a marketing channel, their enormous potential to understand and target consumers could be the key to successful advertising in an increasingly performance-based environment. Professor.
For explains that “By reframing social networks as the collective actions and conversations of consumers, as evidenced by on the internet,’ marketers could utilize social media as a place to conduct research-e.g. testing messages with actual customers in a real world as well as listen to how customers talk about their services or products to their peers, or gather suggestions for new products or improving existing ones. In addition, marketers can determine the influencers, mavens and “heavies” on social media (the people who are the most active in posting, discussing and sharing) and let them test beta to write about and promote their products or services.”
Social networks can not only assist and monetize your youtube channel to better comprehend and influence their target audience They also can also increase their reach. As per Advertising Age, there is “emerging evidence” that mapping social interactions of consumers online creating what are known as social graphs — could be as effective as traditional targeting and segmentation for forecasting how people will react to advertisements.”
The idea is not to just market to your consumers, but also market to all the people who are part of the consumer’s social network. The idea of advertising is to be able to associate “consumers who already have connections with each other and share the same beliefs and values and beliefs, which is known as homophily.” Yahoo and a few small startups are beginning to prove this idea.
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